SEEKING NEW ECONOMIC STRENGTH

Government agencies believe phenomenal export performance will be the new normal

GOVERNMENT agencies say they are working towards creating new economic strength for the country through exports.

They believe the recent phenomenal export performance is set to be the new norm for the country, marking a significant shift in the national economic identity.

While Malaysia’s economy is already well-diversified and no longer reliant on commodities trading like oil and gas, they said preparatory efforts for globalisation in the digital era would further drive exports higher.

“Global trade has improved after a sharp decline since 2008, but globalisation has never headed backwards.

“With the adoption of digital technology to help the flow of physical goods as well as data and information, we are entering a new phase of globalisation,” said a spokesman from one of the agencies.

Malaysia External Trade Development Corp (Matrade) chief executive officer Dr Shahreen Zainooreen expects to see high growth among local companies, especially those seeking to widen their export base through the digital economy.

This bucks past export growth trends, which were mainly driven by foreign direct investments from multinational companies, he said.

“Our current available infrastructure is considered among the best in the region. With the announcement of the Digital Free Trade Zone, we will have a worldclass logistics system to support our trade,” he told NST Business on the sidelines of the World Islamic Economic Forum (WIEF) here yesterday.

Shahreen said as long as the external component (global trade) remained positive, the country’s phenomenal export performance would continue.

Malaysian Technology Development Corp (MTDC) said it aimed to be bolder in its investment allocation and would better target technology startups and companies which use automation and data in their manufacturing processes.

“The companies should have the ability to innovate and identify with their customers, as well as have the ability to set up partnerships and ecosystems that support their digital transformations.

“These abilities means that our investee companies should have high export potential. This is good as they can then create new jobs and provide tax revenue for the government,” said its chief executive officer Datuk Norhalim Yunus.

He said two of MTDC’s investee companies, which would be listed by next year, gained 98 per cent of their revenue from exports.

Cahya Mata Sarawak Bhd, one of MTDC’s investee companies, is also adopting digitalisation to manufacture its products. It is in the midst of exporting its new chemical products to Japan and Southeast Asia.

Malaysia Digital Economy Corp Sdn Bhd (MDEC), meanwhile, has the ambition to make Malaysia a global leader for Islamic financial technology solutions.

A comprehensive Islamic Digital Economy framework is set to be completed by the first quarter of next year.

“The new framework will boost the local halal maket and help Malaysia be a leader in the global Islamic Digital marketplace.

“We hope to attract many more start-ups from all over the world to come here and develop financial solutions out of Malaysia to serve the global market,” said chief executive officer Datuk Yasmin Mahmood.